Prairie Operating(US:PROP)2025-11-14 21:42Acquisitions - The company completed the Edge Acquisition on July 3, 2025, acquiring 47 wells on approximately 11,000 net acres for a total purchase price of $12.5 million [224]. - The Bayswater Acquisition was finalized on March 26, 2025, with a purchase price of $602.8 million, funded through cash, stock issuance, and borrowings [226][228]. - The company acquired approximately 5,500 net acres from Exok for $1.6 million as part of the Third Exok Acquisition completed on August 8, 2025 [225]. - The Edge Acquisition involved acquiring 47 operated and non-operated wells on approximately 11,000 net acres for a total purchase price of $12.5 million [239]. - The Bayswater Acquisition had a total cash consideration of $482.5 million, with an interim settlement payment of $30.7 million received on June 6, 2025 [240]. - The NRO Acquisition's total consideration was reduced to $84.5 million in cash after amendments on August 15, 2024 [241]. - The final purchase price for the NRO Acquisition was $55.5 million, settled in December 2024 [242]. Production and Revenue - Total revenues for the three months ended September 30, 2025, were $77.7 million, compared to $158.6 million for the nine months ended September 30, 2025 [244]. - Crude oil sales for the three months ended September 30, 2025, were $64.9 million, while natural gas sales were $7.6 million and NGL sales were $5.2 million [244]. - Average realized price for oil (excluding effects of derivatives) was $58.70 per MBbl for the three months ended September 30, 2025 [245]. - Total production for the nine months ended September 30, 2025, was 4,329 MBoe, with an average sales volume of 23,029 Boe/d [244]. - The Bayswater Acquisition, closed on March 26, 2025, contributed significantly to production and revenues from March 26, 2025, through September 30, 2025 [248]. - The NRO Acquisition, closed in October 2024, did not contribute any production or revenue prior to its closing [248]. Financial Performance - Net income from continuing operations for the three months ended September 30, 2025, was $1.287 million, compared to a loss of $11.424 million for the same period in 2024 [263]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $99.518 million, significantly up from a loss of $19.992 million in the same period of 2024 [263]. - The company had a net loss of $22.5 million and $67.5 million for the three and nine months ended September 30, 2025, respectively, with cash and cash equivalents of $10.6 million and a working capital deficit of $24.0 million [300]. Expenses - For the three months ended September 30, 2025, total operating expenses increased to $50.7 million from $8.8 million in the same period of 2024, representing a significant rise driven by acquisitions [249]. - Lease operating expenses for the three months ended September 30, 2025, were $15.4 million, an increase of $15.4 million compared to the same period in 2024, primarily due to increased production from the Bayswater and NRO Acquisitions [249]. - Transportation and processing expenses rose by $2.2 million for the three months ended September 30, 2025, compared to the same period in 2024, attributed to increased production from recent acquisitions [250]. - Ad valorem and production taxes increased by $4.7 million for the three months ended September 30, 2025, compared to the same period in 2024, driven by higher production levels [251]. - Depreciation, depletion, and amortization expenses increased by $16.0 million for the three months ended September 30, 2025, compared to the same period in 2024, largely due to increased production from acquisitions [252]. - General and administrative expenses for the three months ended September 30, 2025, increased by $3.5 million compared to the same period in 2024, driven by higher non-cash stock-based compensation and litigation expenses [253]. - Interest expense for the three months ended September 30, 2025, increased by $9.0 million compared to the same period in 2024, primarily due to interest on the Credit Facility [254]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, were $10.640 million, an increase from $5.192 million at the beginning of the period [273]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $67.384 million, compared to a net cash used of $5.658 million in the same period of 2024 [273]. - Net cash used in investing activities increased to $608.536 million for the nine months ended September 30, 2025, primarily due to the Bayswater Acquisition costing $467.5 million [274]. - As of September 30, 2025, the company had a working capital deficit of $24.0 million, improved from a deficit of $44.7 million as of December 31, 2024 [272]. - As of September 30, 2025, the company had $58.0 million available under the Credit Facility, indicating sufficient liquidity to meet its obligations [302]. Debt and Financing - The company has a maximum credit commitment of $1.0 billion under its Amended & Restated Credit Facility, with a borrowing base of $475.0 million as of September 30, 2025 [227]. - The company plans to fund its development program and operations through cash flow from operations, liquidity from the Credit Agreement, and proceeds from the ATM Offering [268]. - The company is in compliance with all financial covenants under the Amended & Restated Credit Agreement as of September 30, 2025 [277]. - On September 30, 2024, the company issued a Senior Convertible Note to Yorkville for $15.0 million with an 8.00% interest rate and a maturity date of September 30, 2025 [283]. - During Q1 2025, Yorkville converted the remaining $11.3 million of the Senior Convertible Note into 2.1 million shares of Common Stock, resulting in a loss of $5.5 million recognized on the statement of operations for the nine months ended September 30, 2025 [287]. - The company entered into a Subordinated Note for $5.0 million on September 30, 2024, with a 10.00% interest rate and a maturity date of March 17, 2027 [289]. - The Series F Preferred Stock was issued for $148.3 million, with net proceeds of approximately $137.2 million used to fund a portion of the Bayswater Acquisition [293]. - The Series F Preferred Stockholder is entitled to a 12% annual dividend, which may be paid in cash or shares of Common Stock, with the dividend rate increasing to 25% after six months post-maturity of the Amended & Restated Credit Agreement [294]. - As of September 30, 2025, the maximum redemption amount of the Series F Preferred Stock was adjusted to $158.7 million, resulting in a remeasurement of $20.0 million for the three months ended September 30, 2025 [297]. Hedging - The company executed a hedging program securing prices of $60.45 per barrel for the remainder of 2025 and $60.02 per barrel for 2026 and 2027 [233]. Derivatives - The realized gain on derivatives for the three months ended September 30, 2025, was $8.0 million, reflecting favorable changes in cash settlements during the period [255]. - The unrealized gain on derivatives for the three months ended September 30, 2025, was $1.0 million, driven by favorable changes in the fair value of open derivative contracts [256]. Discontinued Operations - The net loss from discontinued operations for the nine months ended September 30, 2025, decreased by $1.0 million compared to the same period in 2024, primarily due to the completion of the Crypto Sale [260].